Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

Asia Pac IPO & Placement Research, China biotech

Chaoju Eye Care (朝聚眼科) Pre-IPO: Beware of Value Trap

Chaoju Eye Care (朝聚眼科) Pre-IPO: How Does It Fare Against Industry Leader

Chaoju Eye Care (朝聚眼科) Pre-IPO: Growth Prospect Far from Being Impressive

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Chaoju Eye Care Holdings / Equity Capital Markets

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<p>Chaoju Eye Care raised HKD 1,357 million (USD 175m) from its global offering and will list on the Hong Kong Stock Exchange on Wednesday, July 7th.</p>
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<p>In previous notes, we discussed that Chaoju is an eye specialist hospital with a geographical focus in the Northern region in China. The company started in 1988 as an ophthalmic clinic and currently operates 17 hospitals with a total GFA of 87,146 sqm as of January 2021. The company recorded revenue growth of 13% p.a. between FY18 and FY19. Having said that, around 60% of the total revenue came from three hospitals, namely Baotou Hospital, Hohhot Hospital, and Chifeng Hospital. The company plans to open 11 new hospitals in Inner Mongolia, Zhejiang, and Jiangsu in the next three years, representing a 9% GFA CAGR. Another notable driver for the company is a higher mix of consumer ophthalmic services, which have a higher gross margin than other segments. We are of the view that the company doesn't have strong backing from investors. Its growth prospects in terms of hospital expansion are only moderate despite a strong momentum in the ophthalmic sector in China. </p>
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<p>In this note, we look at the updates since our last note. Sentiments wasn't positive for the deal, as  we have expected and share allocation for institutional investors were concentrated. As such we do not expect the deal to stay flat or fall marginally below IPO price on debut. </p>
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Chaoju Eye Care raised HKD 1,357 million (USD 175m) from its global offering and will list on the Hong Kong Stock Exchange on Wednesday, July 7th.


In previous notes, we discussed that Chaoju is an eye specialist hospital with a geographical focus in the Northern region in China. The company started in 1988 as an ophthalmic clinic and currently operates 17 hospitals with a total GFA of 87,146 sqm as of January 2021. The company recorded revenue growth of 13% p.a. between FY18 and FY19. Having said that, around 60% of the total revenue came from three hospitals, namely Baotou Hospital, Hohhot Hospital, and Chifeng Hospital. The company plans to open 11 new hospitals in Inner Mongolia, Zhejiang, and Jiangsu in the next three years, representing a 9% GFA CAGR. Another notable driver for the company is a higher mix of consumer ophthalmic services, which have a higher gross margin than other segments. We are of the view that the company doesn't have strong backing from investors. Its growth prospects in terms of hospital expansion are only moderate despite a strong momentum in the ophthalmic sector in China. 


In this note, we look at the updates since our last note. Sentiments wasn't positive for the deal, as  we have expected and share allocation for institutional investors were concentrated. As such we do not expect the deal to stay flat or fall marginally below IPO price on debut. 


Chaoju Eye Care (朝聚眼科) IPO Trading: Fairly Valued for Its Operation